The Commodity Futures Trading Commission added another weapon to its enforcement arsenal today by issuing a new rule that demands derivatives traders record and store trade-related phone calls, voice mails and online chatter.
The final rule, touted as necessary for policing the futures market and to “preserve critical evidence” requires that futures commission merchants (FCMs), introducing brokers (IBs) with aggregate gross revenue over $5 million during the past three years, and members of designated contract markets (DCMs) and swap execution facilities (SEFs) log and record all oral communications that lead to the execution of a commodity futures or options contract, retail foreign exchange transaction, or swap. The recordings must document any and all discussions related to quotes, solicitations, bids, offers, instructions, trading, and prices.
